To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, He is a valuable resource for anyone looking to navigate the financial market.
Our washing machine and furnace died within 4 days of each other. $7,000. Thank God for our emergency fund. Wrote the checks, didn't blink. Had a great Christmas. 😊
Good for you! A lot of new homeowners just assume its cheaper than renting and they'll never have to drop $5-15K on short notice and it becomes such an albatross.
There's no better saving's account than Bitcoin,....$300 invested just 1.5 year ago is now $1,300. These guys have solid advice and ground rules for traditional finance but the game has changed...you don't want to just " keep up with inflation". You want to outperform it, and not even the S&P500 is doing that. True inflation is closer to 15%, Idk if these guys have realized everything is depreciating against Bitcoin.
@@NesDaKiddude, this is for an emergency fund. It needs to be highly liquid so you can access it almost instantly. Crypto withdrawals to cash can take 10 business days or more which is goes against what an emergency fund is there for. Crypto is cool but not for emergency fund.
wrong, Bitcoin is the most liquid asset in the world, which is why it's so volitaile because it can be traded any day of the week at any hour. No it doesn't take 10 business days, it takes 30 mins max. Bitcoin was designed to function without 3rd parties..
Why? Did they get you? They're boosting Dave's algorithm with comments, and the scammers are dumping resources to a very obvious waste of their time. If you fall for the scam of 30x returns because some bot put a comment in a youtube comments section, Dave would call that a 'stupid tax'.
But why? I have 20x my portfolio with the help of financial advisor, Sir Eric Dickerson, of Los Angeles. You can find him online. His web page will have typos and you will have to wire him money with no recourse of getting your money back but if you want to 20x you have to throw common sense out the window. Message him to 20x. Good luck friends. I'm rich now after my 20x. Wish you the best.
One of my regrets is not starting a high yield savings account earlier. 8 years of just a couple Pennie’s a month. Now about $100 a month. Just for the money sitting there. I tell as many people as I can now
Ally bank is pretty decent around 4. This bank is it a credit union, cd or what the CIT? Are you still getting 5% and is the interest accured daily or monthly? Sounds more like a cd if your getting 5% still because rates have dropped?
I would say both, keep a portion in a Money Market to have liquid and easily accessible. Keep what you don’t need liquid in an Online High Yield Savings Account. When you first transfer money out of an Online Account, it can take up to 7 days which is way too long if you have an emergency. Thus, a money market eliminates that problem, and allows you access the money immediately, so long it is at a physical local bank.
Your $1000 emergency fund can be in a local savings making basically nothing. Once you have enough to have the interest mean something you won’t care about the emergency fund because your investments will be making way more.
This video came just in time to add to my conversation with my father. We were talking about best places to “keep” our savings as so many banks invest in your money but do not justify low returns… LOVE THE RAMSEY TEAM!!
I keep the $1000 in my checking account for cash for purposes until I'm out of debt. Never spend the $1000 that is budgeted, but it's there while we wait for the first pay check of the month. Will be putting my 3-6 month emergency fund in an online savings account.
As I understand it, the Emergency Fund and the 3 (6 or 12) Month Ahead Fund are in actually two different funds. Certainly with other financial gurus. The Emergency Fund is to cover the unplanned, needed, expenses for which you might elsewise pull out a credit card; at worst, it is a revolving fund and at best it is some savings. The X-month Ahead Fund is more of a long term sinking fund or savings; savings if job loss, medical, and job change don't call for using it.
@@terryhenderson424 Going strictly by the Ramsey 7 baby step formula, they do not discuss budgeting specifically (although Dave does recommend zero-based budgeting in his book). Step 1 is a starter emergency fund of $1000 and then after the debt is cleared in step 2, Step 3 is to save up a real emergency fund of 3-6 months of expenses. I am aware of the getting a month (or more) ahead plan, but I think in that case, that money would be in the checking account ready to pay next month's bills. The possibility of losing one's income is exactly the purpose of the emergency fund according to the Ramsey plan. My point here was only to point out that Dr John was not aware of the difference between the sizes of the Step 1 and Step 3 emergency funds. Giving him the benefit of the doubt, I think it is possible that he heard the caller mention the $1000 step 1 amount and then thought that the question revolved around that figure.
@MaxGrey03 i must confess that I've never done Peace University nor used the Every Dollar Counts budgeting app. I have seen significantly varying interpretations of the Ramsey approach and steps. And yes, the actual meaning of " 1 Month Ahead" seems to vary from guru to guru and then individual's interpretation of them. Further, it seems these terms shift a little over time in the general populace. I did hear the 3 Month Ahead fund called the Emergency Fund here in Ramsey land in this video; ive probably heard the same before but it blew over my head. I'm going to have to listen more/ differently again for a while. I know I've been listening with a bias that there is a big difference between multiple months of financial security should there be a big income disruption versus making a vehicle repair, replacing an unplanned household appliance, etc...
@@cousinjeb7116 True. Maybe I read into the question that he was asking where to keep the emergency fund long term, as he is starting it now but realizes that the goal is a significant amount of money. Do you think Dr John was focusing on the current value rather than the ultimate goal? I guess that is possible.
have two HYSAs - one that offers high enough rate and has a reputation/known to make the fund available and another that gives the best rate. Park long term emergency fund in the best rate HYSA, and move unused money in the checking into high availability HYSA
Keeping extra cash in a money market making 4.5% instead of paying down a lower interest mortgage doesn’t seem that complicated to me. But my job doesn’t depend on pretending otherwise.
Wherever you go, don't go to Fairwinds. They pay 5% on the first $1000, but only 3% on the rest of the emergency account savings. Almost every other online bank with a high yield savings account is paying more than that. George is getting suckered.
I used to move to different banks chasing the highest yield and it wasn’t even worth the effort. Now I park it in floating rate treasury ETFs and get practically the same rate
Depending on the percentage amount. A good .75% is decent if you have a decent amount liquid cash to switch. But for .25, nah just stick with it. Barclays is a good one, but requires 25,000 usd for 200 bonus which sucks.
So, at a 4% interest rate, your $1,000 will earn exactly $40.00 interest in a year. With that in mind, I agree with John. Just put the money in a savings account at a local bank or credit union. For me, the local aspect is important. Cash can be very useful when you're dealing with the problems an emergency fund is intended to address (car repairs, broken appliances, etc.). It can be difficult to withdraw more than a couple hundred dollars from an ATM, and sometimes it's nice to just walk into a local bank and get cash in different denominations.
I am currently in my 50s and This is no time to tamper retirement savings. I want to max out my retirement contributions and I also have another $380k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
My wife and I keep our emergency fund in precious metals (don’t tell Dave). And our less fluid “envelope” funds (new car, vacation, etc) are put into an index fund.
Great video, Ramsey! Your insights on where to keep an emergency fund were super helpful. Do you have any recommendations for remote companies that might be better than ours?
I never thought about the fact that medical debt is actually unavoidable if you ever go to the doctor. You can't pay it up front, you always have to just wait for them to send you a bill, at which point you are technically in debt. But on the bright side, it doesn't get charged interest or anything until it becomes delinquent. Makes ya think.
Money market fund generates 5% for past few years. No checks or debit card, no fees, just 5% earnings on your safe fund. They're 2 different interments, so why not earn what you can on money you won't spend? If you have to, withdraw it.
The money market account I have has a very low interest rate… But I also have have a high yield checking account that gives way more interest. I’m probably going to close my Money Market account.
You can often get one with whoever you have your IRA and brokerage account with, too. I have one with ETrade, and I know Fidelity and Vanguard offer them.
When the question is asked what is your household income, should the answer be gross or net? I ask because everytime I am told how much someone makes a year they always tell me what they gross
@@carterbaumer358 you’re welcome! Great question. I hear it a lot too and it confuses me because imo gross is kind of irrelevant. It’s good not know home much total we made, but that’s all it’s good for I think. When the irs taxes us at the end of the year, they don’t tax our gross income they adjust it by giving us tax deductions, standard or itemized, which is called the Adjusted Gross Income. Which is a lower amount than what we actually grossed. And like your question, what we bring home each week or bi weekly, or monthly is the net amount after deductions. That money is what we’re actually using to pay our bills, pay off debts, save and invest. It’s what we actually have to use. So I agree that we need to use the net, more than gross, when talking about what we make annually.
The High yield savings is better then the money market for Emergency funds I think while the Money Market is better for saving for big purchases such as a down payment on a house. The fact you DONT have a debit card for a emergency fund and that I have to either go to a separate bank and do a ACH transfer or use a ATM card to access my emergency savings creates more friction. I like making it harder to access then my daily spending money or a special savings project.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had quarter of a million to create a strong portfolio, which stock would you choose for better returns?
I believe a solid portfolio should include three key components: ETFs for diversification, dividend stocks for steady cash flow, and top tech stocks. Given your budget, it’s a smart move to consult a fiduciary advisor for professional guidance.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Hey, I'm trying to find a certified one to boost my investments/portfolio, but it's tough online. Can I get a ref from you, since you know about this stuff?
She goes by Grace Lorraine Austin. She is a renowned figure in the financial industry with years decades of experience. I'd suggest you research her further on the web.
Glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
Elon Musk said that with his personal trading in Bitcoin,he is financially affected when the market drops, holding of cryptocurrencies isn't trading you might end up losing your funds📊📊📊
The daily jesus devotional has been a huge part of my transformation, Now I'm no longer in debt after I invested $12,000 and got my payout of m $270,500 every months,God bless Ms willburn..
Financial planning is like navigation of wealth wisely by adhering to necessary strategies. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
Did someone just mention Mrs Theresa? Damn! You just made my day; what a coincidence.. I've worked with her for over 2years and I can tell how good she is
with over 10 years of tra ding experience, Mrs Theresa has gained herself a good reputation by helping a lot of persons build their financial portfolio through investments.
$1000.00 starter emergency fund just savings. $20,000 + high yield or money market. High yield can do this through many local banks at 4% interest which adds $1000.00 a year that alone might keep up with inflation.
I live in Australia... I am watching the Australian dollar continue its spiral down against the USD, PS and Euro etc. What are peoples thoughts on having an interest bearing savings account in USD and placing a portion of my savings in USD. (Not emergency fund). The account I have has very minimal exchange fees. Would love to ring Dave Ramsey on this topic and others, but I doubt he would take international callers.
Baby Step 1 is saving the $1,000. Once that is done, you start Baby Step 2, no more contributing or investing until all debt is paid off. Baby Step 3, is resuming adding to the $1,000 emergency fund to get it to 3-6 months living expenses at a minimum, you make the call, 3, 6, 12 months up to you. Then Baby Step 4, investing 15% of household income, working simultaneously on Baby Step 5. Once there all effort in Baby Step 6, once that is paid off, then live on less than you make, live and give generously!
I have two banks. The big one has some income direct deposited and some direct pay bills. My second bank is a small farmers and business bank in Iowa. I have a paycheck direct deposited there. They also have my CD’s because they have the best rate. They are low overhead bricks and mortar.
My small emergency fund is just in my savings account. If I must use more I would sell one of my BDC'S although I wouldn't be happy about it. I also park money in a tax free, but would hate to use it.
Actually a US Treasury money market account with a brokerage firm yielding about a half a percent more APY and online savings account. Although not FDIC insured it invests in US treasuries. I have about $50,000 in a US Treasury money market at a local Regional Bank brokerage account. As long as I make an online transfer before 2:00 p.m. I will have the transferred money in my checking account the next business day.
I make 5% in my checking account but limited on max you can keep in there. Its a local account by me. Look around. There are some high yield in your area. I do have quite a bit in a money market account at 4.5%. I recommend republic bank in Chicago or vio bank.
It should be mentioned that depending on the taxesnin the callers state a municipal bond money market fund may be beneficial or a Government Only money market fund (government only find invests only in government paper and is thus exempt from state income taxes). As always do your own research
I know this has been talked about and answered, but I still think they should update baby step 1 to $2,000. Main reason is just the rise in the price of everything over the last 3 decades. In 1995, you might have had a car repair that included say struts, control arms, and tie rods total $750. In 2024, you’ll be double that. And yes, you can do it yourself to save on labor, but most people are unable to. Basically, what I’m saying is moderate emergencies might have been $700 in 1995, but those same moderate emergencies are $1,500 today, so a starter emergency fund of $2,000 in 2024 makes more sense.
They will never change that $1000 while Dave is still alive. He wants to project the idea that the baby steps are infallible and therefore must be true and unchanging for all eternity.
just had an emergency car repair that cost me $1700. Two weeks ago, another unexpected car repair cost $1200. Three months ago, unexpected vet bills cost $3000. A $1000 emergency fund in 2024 or 2025 is a joke.
If it's the same car, it's time to let it go. It will always bring trouble. I dipped after spending over 5k on it only have another issue, turbo was going out. What a nightmare. Vw garbage.
It’s not meant to be enough. If you listen to his presentation in the baby steps he explains it well. $1000 is NOT ENOUGH, and it is not meant to be enough! It’s meant to be a small but doable goal to make people who start feel capable and a little bit safe. This step is meant to be temporary while you get out of debt AS FAST AS POSSIBLE. Then baby step 3 is where you have the “Fully funded emergency fund”! And that’s where you personalize it to your needs. The $1000 needs to be easy enough that people actually can achieve it without losing hope, but big enough to actually cover an emergency, it’s not meant to cover multiple emergency’s, that’s what baby step 3 is for. I understand the frustration with the $1000, but tbh it’s more about just having a set place to start rather than being an actual safety net
Thank you so much for this amazing video! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Your emergency fund should be kept in Gold and Silver coins in a safe hidden place in your own home. Digital pixels in a bank account or brokerage account are not legally yours. As inflation continues to get worse your savings in fiat dollars will become worthless. Never trust the banks or government to secure your finances.
A lot of people don’t understand that when you put money in a bank, it is no longer your money. It now belongs to the bank. All that you have is an IOU from the bank saying they will pay you back. Not sure about the emergency fund in silver though. Its too volatile for my taste, and it’s really heavy!
I keep a brick and mortar savings and checking account that i like to keep about $1000 in, no more or less, and then my full EF is in a HYS online account currently getting about 4% interest.
I have cash saved for a replacement vehicle. I am age 74 now and I am also "hoping" that my 2012 Subaru with just 100,000 miles on it will last me the rest of my life. I'm a senior so I am already drawing out of my IRA (and I own a condo.) So it makes no sense to put that cash into my IRA because I am going to have to pay my financial advisor his fees and taxes. I want insured, no fees and liquid. BUT if not I have about $32,000 in CD's saved for that vehicle if I am accidently hit by another car. I chose Discover Bank (on-line) because I am getting a 5.0 interest rate. And no fees. I have been working with them now for over four years and have been 100% happy with my decision. Each year I roll it over for another year.
Yea, even say 50k you're only pulling in 200 to 300 bucks more a year by switching around. Not worth it unless you're doing short term CDs with diffrent banks that offer better rates. Rates will continue to fall in the coming year cross the board.
Eric form Cincinnati is acting like his $1000 is a million. Bud, it doesn’t really matter where you put that thousand dollars. Even if you find a great interest rate, it’s gonna make less than 50 bucks a year what you need to focus on how you’re spending the rest of your money all year long. Make and follow a tight budget and you’ll be able to save a lot more than your $1000 emergency fund will make anywhere.
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
If this guy only spent the same amount of time thinking about how to increase his income instead of how to squeeze out a little bit more out of a measly 1000 account, he would be much better off. IMO it’s pointless to worry about a few percent here and there until you’re over $50k in savings.
To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
Money was irrelevant to my marriage. The much stronger relevancy was and is what is most important to spend money on and what's least important.
You're speaking from experience?
Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
How did you find a good finance advisor? How do you know if they are trustworthy and competent.
My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, He is a valuable resource for anyone looking to navigate the financial market.
Our washing machine and furnace died within 4 days of each other. $7,000. Thank God for our emergency fund. Wrote the checks, didn't blink. Had a great Christmas. 😊
Good for you! A lot of new homeowners just assume its cheaper than renting and they'll never have to drop $5-15K on short notice and it becomes such an albatross.
How much was the furnace?
Really? Spending $7K is ok with you?
@@miketheyunggod2534 Welcome to home ownership
@@miketheyunggod2534 Its part of life
I just opened a HYSA. Man the difference lol. $16 in interest vs 5 cents from Chase.
Can you please share which bank did you open this HYSA?
There's no better saving's account than Bitcoin,....$300 invested just 1.5 year ago is now $1,300. These guys have solid advice and ground rules for traditional finance but the game has changed...you don't want to just " keep up with inflation". You want to outperform it, and not even the S&P500 is doing that. True inflation is closer to 15%, Idk if these guys have realized everything is depreciating against Bitcoin.
@@NesDaKiddude, this is for an emergency fund. It needs to be highly liquid so you can access it almost instantly. Crypto withdrawals to cash can take 10 business days or more which is goes against what an emergency fund is there for.
Crypto is cool but not for emergency fund.
wrong, Bitcoin is the most liquid asset in the world, which is why it's so volitaile because it can be traded any day of the week at any hour. No it doesn't take 10 business days, it takes 30 mins max. Bitcoin was designed to function without 3rd parties..
@@NesDaKid ok crypto bro 🤣
TH-cam needs to do something about all these scam bots.
Why? Did they get you? They're boosting Dave's algorithm with comments, and the scammers are dumping resources to a very obvious waste of their time. If you fall for the scam of 30x returns because some bot put a comment in a youtube comments section, Dave would call that a 'stupid tax'.
@@Sizukun1Cause they’re annoying and clutter up the comments. Good grief, quit sniffing your own farts.
I half expected a reply that says “I know!!!! I called X person, and they removed all my spam!”. Followed by like 5 other replies backing it up.
But why? I have 20x my portfolio with the help of financial advisor, Sir Eric Dickerson, of Los Angeles. You can find him online. His web page will have typos and you will have to wire him money with no recourse of getting your money back but if you want to 20x you have to throw common sense out the window. Message him to 20x. Good luck friends. I'm rich now after my 20x. Wish you the best.
They are too busy censoring conservative and shadow banning them. Meanwhile 1 day old accounts spam the same thing over and over
I love that Dr. John gave Eric the opportunity to do the Debt Free Scream. Small but special. Way to go Eric!
(Edited to correct a typo)
its crazy how some people will have 800k in debt and sleep like a baby and then there are dudes like this
Ignorance is bliss... or a vast income difference.
Having a good emergency fund turns an emergency into an inconvenience
Love this!
My guy, this is my new mantra!
One of my regrets is not starting a high yield savings account earlier. 8 years of just a couple Pennie’s a month. Now about $100 a month. Just for the money sitting there. I tell as many people as I can now
Which bank do you use for your hysa?
@ CIT bank. It’s pretty consistently given me back 5%. Insured up to $250k. Don’t have nearly that amount in there, but still good to know
Well, for a long time you wouldn't have been earning that high of an interest rate.
@@Andrew-it7fb true, but it would’ve definitely been higher than the 20 pennies a year I was getting
Ally bank is pretty decent around 4. This bank is it a credit union, cd or what the CIT? Are you still getting 5% and is the interest accured daily or monthly? Sounds more like a cd if your getting 5% still because rates have dropped?
I would say both, keep a portion in a Money Market to have liquid and easily accessible. Keep what you don’t need liquid in an Online High Yield Savings Account. When you first transfer money out of an Online Account, it can take up to 7 days which is way too long if you have an emergency. Thus, a money market eliminates that problem, and allows you access the money immediately, so long it is at a physical local bank.
Your $1000 emergency fund can be in a local savings making basically nothing. Once you have enough to have the interest mean something you won’t care about the emergency fund because your investments will be making way more.
My emergency fund is in a high-yield savings account. It's just over $30k, and I make over 5% interest.
This video came just in time to add to my conversation with my father. We were talking about best places to “keep” our savings as so many banks invest in your money but do not justify low returns… LOVE THE RAMSEY TEAM!!
I keep the $1000 in my checking account for cash for purposes until I'm out of debt. Never spend the $1000 that is budgeted, but it's there while we wait for the first pay check of the month. Will be putting my 3-6 month emergency fund in an online savings account.
Dr John, Step 3 is 3-6 months of expenses(which can be $20k-$30k or more), not $1000 (which is step 1).
As I understand it, the Emergency Fund and the 3 (6 or 12) Month Ahead Fund are in actually two different funds. Certainly with other financial gurus. The Emergency Fund is to cover the unplanned, needed, expenses for which you might elsewise pull out a credit card; at worst, it is a revolving fund and at best it is some savings. The X-month Ahead Fund is more of a long term sinking fund or savings; savings if job loss, medical, and job change don't call for using it.
@@terryhenderson424 Going strictly by the Ramsey 7 baby step formula, they do not discuss budgeting specifically (although Dave does recommend zero-based budgeting in his book). Step 1 is a starter emergency fund of $1000 and then after the debt is cleared in step 2, Step 3 is to save up a real emergency fund of 3-6 months of expenses. I am aware of the getting a month (or more) ahead plan, but I think in that case, that money would be in the checking account ready to pay next month's bills. The possibility of losing one's income is exactly the purpose of the emergency fund according to the Ramsey plan. My point here was only to point out that Dr John was not aware of the difference between the sizes of the Step 1 and Step 3 emergency funds. Giving him the benefit of the doubt, I think it is possible that he heard the caller mention the $1000 step 1 amount and then thought that the question revolved around that figure.
@MaxGrey03 i must confess that I've never done Peace University nor used the Every Dollar Counts budgeting app. I have seen significantly varying interpretations of the Ramsey approach and steps. And yes, the actual meaning of " 1 Month Ahead" seems to vary from guru to guru and then individual's interpretation of them. Further, it seems these terms shift a little over time in the general populace. I did hear the 3 Month Ahead fund called the Emergency Fund here in Ramsey land in this video; ive probably heard the same before but it blew over my head. I'm going to have to listen more/ differently again for a while. I know I've been listening with a bias that there is a big difference between multiple months of financial security should there be a big income disruption versus making a vehicle repair, replacing an unplanned household appliance, etc...
The caller is just starting Step 3.
@@cousinjeb7116 True. Maybe I read into the question that he was asking where to keep the emergency fund long term, as he is starting it now but realizes that the goal is a significant amount of money. Do you think Dr John was focusing on the current value rather than the ultimate goal? I guess that is possible.
HYS is so true. I got over $220 interest a few days ago. Thank you , Lord!!!
How much is in the account?
@@BREEZYM6015got to be at least 20,000+
If they're getting 4% that's about 65,000. @@BREEZYM6015
@@BREEZYM6015 if you do the math on a 5% yearly yield, I’d say about $53k.
I’m at $30k, and getting just over $110 a month
Probably around $65,000
have two HYSAs - one that offers high enough rate and has a reputation/known to make the fund available and another that gives the best rate. Park long term emergency fund in the best rate HYSA, and move unused money in the checking into high availability HYSA
Can you please share your HYSA?
Keeping extra cash in a money market making 4.5% instead of paying down a lower interest mortgage doesn’t seem that complicated to me. But my job doesn’t depend on pretending otherwise.
Laurel Road was promoted by this channel but they are filled with reviews of people not able to access their money
Wherever you go, don't go to Fairwinds. They pay 5% on the first $1000, but only 3% on the rest of the emergency account savings. Almost every other online bank with a high yield savings account is paying more than that. George is getting suckered.
@@todd2456 they are making their money on the bond spread. The exact same thing George criticized at the end of the video ironically enough.
I used to move to different banks chasing the highest yield and it wasn’t even worth the effort. Now I park it in floating rate treasury ETFs and get practically the same rate
Depending on the percentage amount. A good .75% is decent if you have a decent amount liquid cash to switch. But for .25, nah just stick with it. Barclays is a good one, but requires 25,000 usd for 200 bonus which sucks.
So, at a 4% interest rate, your $1,000 will earn exactly $40.00 interest in a year. With that in mind, I agree with John. Just put the money in a savings account at a local bank or credit union. For me, the local aspect is important. Cash can be very useful when you're dealing with the problems an emergency fund is intended to address (car repairs, broken appliances, etc.). It can be difficult to withdraw more than a couple hundred dollars from an ATM, and sometimes it's nice to just walk into a local bank and get cash in different denominations.
Especially from these HYSA like Sofi. You pay fees if you take out money from atm's that don't support that bank.
I am currently in my 50s and This is no time to tamper retirement savings. I want to max out my retirement contributions and I also have another $380k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
My wife and I keep our emergency fund in precious metals (don’t tell Dave). And our less fluid “envelope” funds (new car, vacation, etc) are put into an index fund.
Treasury funds. Pays monthly. Captures the yield without marrying duration. Can liquidate at any time. Exposure to underlying price.
Can you please tell us how to open one and how easily accessible is it?
@ you can access these funds just like any other fund, threw a brokerage
Great video, Ramsey! Your insights on where to keep an emergency fund were super helpful. Do you have any recommendations for remote companies that might be better than ours?
I googled your name
Do you guys really offer work from home jobs
@@JadeSanderson654 with what i read a while ago they do for sure
Never heard about them before
I’m really interested in them after reading the Helpful advice
Absolutely fantastic question! Great change of pace from the constant “I’m in a bunch of debt.” “Oh you suck do the baby steps!”
I have both. MY money market is not FDIC but considered very safe. It also pays dividends every month
MM>HYSA because you can move money to and from the market so easily.
I never thought about the fact that medical debt is actually unavoidable if you ever go to the doctor. You can't pay it up front, you always have to just wait for them to send you a bill, at which point you are technically in debt.
But on the bright side, it doesn't get charged interest or anything until it becomes delinquent.
Makes ya think.
In my past life, I died from a terminal illness because I didn't have an emergency fund and refused to go into debt.
We have a health savings account equal to our max yearly out of pocket
Only in America
Every other developed country you're not in debt just by seeing a doctor
@@ykook7000 no, you're forced to pay higher taxes at gunpoint to your government instead
Which one has a higher interest. My bank offers both. The money market comes with a debit card and check book. Chose the money market
Money market fund generates 5% for past few years. No checks or debit card, no fees, just 5% earnings on your safe fund. They're 2 different interments, so why not earn what you can on money you won't spend?
If you have to, withdraw it.
The money market account I have has a very low interest rate… But I also have have a high yield checking account that gives way more interest. I’m probably going to close my Money Market account.
I’ve been banking with ALLY for a HYSA they are super simple and easy to use
You can often get one with whoever you have your IRA and brokerage account with, too. I have one with ETrade, and I know Fidelity and Vanguard offer them.
How did a $500 debt cause him to almost get evicted?
Im do not think that had anything to do with the almost getting evicted.
8:58 "Solve for peace." -- John Deloney
Lending Club Level Up HYSA is the best at 4.75%! FDIC insured too. You’re welcome.
Are they safe. I’m looking for one but I’m scared of having an online bank
Many money market accounts have lower interest rates than high yield savings accounts.
When the question is asked what is your household income, should the answer be gross or net? I ask because everytime I am told how much someone makes a year they always tell me what they gross
Should be net. That’s what you actually use to pay expenses.
@terrencejenkins7995 Thank you
@@carterbaumer358 you’re welcome! Great question. I hear it a lot too and it confuses me because imo gross is kind of irrelevant. It’s good not know home much total we made, but that’s all it’s good for I think. When the irs taxes us at the end of the year, they don’t tax our gross income they adjust it by giving us tax deductions, standard or itemized, which is called the Adjusted Gross Income. Which is a lower amount than what we actually grossed.
And like your question, what we bring home each week or bi weekly, or monthly is the net amount after deductions. That money is what we’re actually using to pay our bills, pay off debts, save and invest. It’s what we actually have to use. So I agree that we need to use the net, more than gross, when talking about what we make annually.
This is nice to know. I have been keeping my emergency fund in a high interest savings account for about a year now and I like it.
The High yield savings is better then the money market for Emergency funds I think while the Money Market is better for saving for big purchases such as a down payment on a house. The fact you DONT have a debit card for a emergency fund and that I have to either go to a separate bank and do a ACH transfer or use a ATM card to access my emergency savings creates more friction. I like making it harder to access then my daily spending money or a special savings project.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had quarter of a million to create a strong portfolio, which stock would you choose for better returns?
I believe a solid portfolio should include three key components: ETFs for diversification, dividend stocks for steady cash flow, and top tech stocks. Given your budget, it’s a smart move to consult a fiduciary advisor for professional guidance.
I agree with you. As an early investor in NVDA, AVGO, ANSS, and PLTR, my financial advisor's advice was incredibly helpful. Over the past 7 years, she has helped me find stocks that did 10x multiple times. With her help, I've grown my portfolio to over a million dollars.
Hey, I'm trying to find a certified one to boost my investments/portfolio, but it's tough online. Can I get a ref from you, since you know about this stuff?
She goes by Grace Lorraine Austin. She is a renowned figure in the financial industry with years decades of experience. I'd suggest you research her further on the web.
Glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
This seems like the worst period.
Even the market are now very unpredictable. Started fews months and lost up to 75k on my own
........
Wow that's huge, loss i guess you trade on your own
yes i do i made some intially but now i lost all
Elon Musk said that with his personal trading in Bitcoin,he is financially affected when the market drops, holding of cryptocurrencies isn't trading you might end up losing your funds📊📊📊
The daily jesus devotional has been a huge part of my transformation, Now I'm no longer in debt after I invested $12,000 and got my payout of m $270,500 every months,God bless Ms willburn..
I'm a newbie, and I'm also profiting.I'm sticking with willburn christen because it's a win-win for me. 💃
4:35 "you can't triple stamp a double stamp, you can't triple stamp a double stamp.....Lloyd, Lloyd" 😂😂
"alalalallalalalalalalal"
Financial planning is like navigation of wealth wisely by adhering to necessary strategies. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
Well I engage in nice side hustles like inves'ting, and the good thing is I do it with one one of the best(Theresa whitehead), she's really good!
Did someone just mention Mrs Theresa? Damn! You just made my day; what a coincidence.. I've worked with her for over 2years and I can tell how good she is
No doubts, this Theresa N. Whitehead must be an icon; how good is she and how safe is "profit making" with her.?
with over 10 years of tra ding experience, Mrs Theresa has gained herself a good reputation by helping a lot of persons build their financial portfolio through investments.
That's interesting!, any way to connect with her? I have to get started.
It really doesn’t matter where you put 1000 bucks. Nothing you do is going to make a huge difference.
@4:52 Thinking oh my John about to get strange on this dude with a breathing - stretching his shoulders exercise. 😅
$1000.00 starter emergency fund just savings. $20,000 + high yield or money market. High yield can do this through many local banks at 4% interest which adds $1000.00 a year that alone might keep up with inflation.
I live in Australia... I am watching the Australian dollar continue its spiral down against the USD, PS and Euro etc. What are peoples thoughts on having an interest bearing savings account in USD and placing a portion of my savings in USD. (Not emergency fund). The account I have has very minimal exchange fees. Would love to ring Dave Ramsey on this topic and others, but I doubt he would take international callers.
Keep your emergency fund in high yeild savings so it still makes money even if you dont use it.
There haven't been many debt free screams lately on this channel
Thats cause everyones in debt
The economy is in the gutter, middle class is so thin either your doing good or drowning
because they cut the full show in half and its on there app thing. they use to be in the middle
Do you keep putting $ into your emergency account after you save the $1,000 or do you open another account and save in that to keep them separate
You can combine them all together to be simple. You can also keep 1000 in regular savings and the rest in high yield account
Baby Step 1 is saving the $1,000. Once that is done, you start Baby Step 2, no more contributing or investing until all debt is paid off. Baby Step 3, is resuming adding to the $1,000 emergency fund to get it to 3-6 months living expenses at a minimum, you make the call, 3, 6, 12 months up to you. Then Baby Step 4, investing 15% of household income, working simultaneously on Baby Step 5. Once there all effort in Baby Step 6, once that is paid off, then live on less than you make, live and give generously!
I put them in the same account. Just keep a personal record of the balance of each individual account.
unlikely to find High Yield savings without some minimum balance requirement.
I have two banks. The big one has some income direct deposited and some direct pay bills. My second bank is a small farmers and business bank in Iowa. I have a paycheck direct deposited there. They also have my CD’s because they have the best rate. They are low overhead bricks and mortar.
It's almost as if my device heard me talking to my friend yesterday discussing where I should put my emergency fund
My money market fund COMPOUNDS interest weekly with absolutely NO FEES. I don’t believe ANY savings account compounds interest.
Having both you have to start somewhere
My small emergency fund is just in my savings account. If I must use more I would sell one of my BDC'S although I wouldn't be happy about it. I also park money in a tax free, but would hate to use it.
Actually a US Treasury money market account with a brokerage firm yielding about a half a percent more APY and online savings account. Although not FDIC insured it invests in US treasuries. I have about $50,000 in a US Treasury money market at a local Regional Bank brokerage account. As long as I make an online transfer before 2:00 p.m. I will have the transferred money in my checking account the next business day.
Good to hear I am heading down the right street ❤
I make 5% in my checking account but limited on max you can keep in there. Its a local account by me. Look around. There are some high yield in your area. I do have quite a bit in a money market account at 4.5%. I recommend republic bank in Chicago or vio bank.
Wealthfront
Yep that’s where I keep my 30k of emergency funds
Love them
Money Market, always, except for anything you need to access in less than 100 hours. No exceptions
I keep a portion of my savings in my chequing account to avoid paying any bank fees. If I maintain a 3K balance, I'm saving $16/ month bank fee
It should be mentioned that depending on the taxesnin the callers state a municipal bond money market fund may be beneficial or a Government Only money market fund (government only find invests only in government paper and is thus exempt from state income taxes). As always do your own research
Better than most people these days
I know this has been talked about and answered, but I still think they should update baby step 1 to $2,000.
Main reason is just the rise in the price of everything over the last 3 decades. In 1995, you might have had a car repair that included say struts, control arms, and tie rods total $750. In 2024, you’ll be double that. And yes, you can do it yourself to save on labor, but most people are unable to.
Basically, what I’m saying is moderate emergencies might have been $700 in 1995, but those same moderate emergencies are $1,500 today, so a starter emergency fund of $2,000 in 2024 makes more sense.
100% agree. Car is the main thing and half of my car emergencies have been over $1000. And if you own a house a water heater is at least $2,500
They will never change that $1000 while Dave is still alive. He wants to project the idea that the baby steps are infallible and therefore must be true and unchanging for all eternity.
just had an emergency car repair that cost me $1700. Two weeks ago, another unexpected car repair cost $1200. Three months ago, unexpected vet bills cost $3000. A $1000 emergency fund in 2024 or 2025 is a joke.
If it's the same car, it's time to let it go. It will always bring trouble. I dipped after spending over 5k on it only have another issue, turbo was going out. What a nightmare. Vw garbage.
It’s not meant to be enough. If you listen to his presentation in the baby steps he explains it well. $1000 is NOT ENOUGH, and it is not meant to be enough! It’s meant to be a small but doable goal to make people who start feel capable and a little bit safe. This step is meant to be temporary while you get out of debt AS FAST AS POSSIBLE. Then baby step 3 is where you have the “Fully funded emergency fund”! And that’s where you personalize it to your needs. The $1000 needs to be easy enough that people actually can achieve it without losing hope, but big enough to actually cover an emergency, it’s not meant to cover multiple emergency’s, that’s what baby step 3 is for.
I understand the frustration with the $1000, but tbh it’s more about just having a set place to start rather than being an actual safety net
Dr Delony: “are you safe, eric?”
Thank you so much for this amazing video! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How should I go about transferring them to Binance?
Your emergency fund should be kept in Gold and Silver coins in a safe hidden place in your own home. Digital pixels in a bank account or brokerage account are not legally yours. As inflation continues to get worse your savings in fiat dollars will become worthless. Never trust the banks or government to secure your finances.
NOTHING is legally yours, fool.
@@amireallythatgrumpy6508someone is easily triggered!
A lot of people don’t understand that when you put money in a bank, it is no longer your money. It now belongs to the bank. All that you have is an IOU from the bank saying they will pay you back. Not sure about the emergency fund in silver though. Its too volatile for my taste, and it’s really heavy!
Sold all my xrp yesterday and bought XAI515K
If I have a small emergency fund, I keep if closer than a bank.
XAI515K$ and AERO will be huge.
Which online bank do you guys use ? & why
How was he almost evicted over $500?
I keep a brick and mortar savings and checking account that i like to keep about $1000 in, no more or less, and then my full EF is in a HYS online account currently getting about 4% interest.
Where can i get a high yield savings account ?
Ally bank
@ thanks 🙏
I have heard Sofi offers a pretty decent one
I have cash saved for a replacement vehicle. I am age 74 now and I am also "hoping" that my 2012 Subaru with just 100,000 miles on it will last me the rest of my life. I'm a senior so I am already drawing out of my IRA (and I own a condo.) So it makes no sense to put that cash into my IRA because I am going to have to pay my financial advisor his fees and taxes. I want insured, no fees and liquid. BUT if not I have about $32,000 in CD's saved for that vehicle if I am accidently hit by another car. I chose Discover Bank (on-line) because I am getting a 5.0 interest rate. And no fees. I have been working with them now for over four years and have been 100% happy with my decision. Each year I roll it over for another year.
I recommend everyone to find the book titled The Elite Society's Money Manifestation, It changed my life.
You need 2 emergency funds. Your first is in a bank. The second is in small ounce silver/gold.
You should keep 5k in your checking account. Above that, put extra into HYSA. The HYSA takes a few days to liquidate.
Some allow you to have a debit card for your HYSA, Wealthfront offers this for example
I believe ally offer a card as well
Good luck with that FDIC insurance when banks start going broke. You might be waiting a month to get your money
Remember when a 4.5% 10y treasury nearly broke our entire banking system lol
And if that happens your “money” will be useless and the least of your problems.
@@2010drive so we are just going to pretend that didn’t just happen in 2023?
@@michael589m It was not close to happening in 2023. Money still exists.
Baloney is over here beating the white knight horse with "I like to shake the hand of my banker" lol Kick rocks John.
If that’s the message you took from that, you need to seek mental help.
4% on a grand is like 40$ a year, he is definitely over thinking it. They needed to pull out a simple calculator for this caller lol
Yea, even say 50k you're only pulling in 200 to 300 bucks more a year by switching around. Not worth it unless you're doing short term CDs with diffrent banks that offer better rates. Rates will continue to fall in the coming year cross the board.
Eric form Cincinnati is acting like his $1000 is a million. Bud, it doesn’t really matter where you put that thousand dollars. Even if you find a great interest rate, it’s gonna make less than 50 bucks a year what you need to focus on how you’re spending the rest of your money all year long. Make and follow a tight budget and you’ll be able to save a lot more than your $1000 emergency fund will make anywhere.
To him that thousand is an achievement. Each of us feel differently about our achievements. That's why it is called Baby Steps
I decided to keep a credit card. Guess I’m only doing 99% of the ramsey plan.
That's not even Dave Ramsey's plan; that's YOUR plan.
Blasphemy!!!!
@ 😂
Just remember that a single mother with four children, struggling to pay her bills, is paying for your credit card rewards and other perks. 🤣
@ 😂 I wonder who’s paying for the rewards that some debit cards offer.
SGOV
I know a guy who knows a guy. He'll hold onto your money and get you 30% return. Just don't ask for your money back.
All while I've been keeping $50k under the mattress for the last 10 years
1:56
What? 😂😂😂
Just be careful with the high yield banking. Remember Graham Stephan George's bestie bought a bank it didn't go well.
Yeah are those accounts still frozen? Thankfully I took all my money out of there before that went down.
I don't think it was a real bank
That’s why it needs to be insured
@KFontLab Yotta claimed to be insured through another bank. The FDIC up until now isn't covering Yotta customers.
Yotta was never a real bank, even mentioned it in their website. Whoever trusted them with tens of thousands had it coming, man.
Hate whoever is in charge of this crap keeps removing my response
SUI and XAI515K is going to explode
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
wow this awesome I'm 47 and have been looking for ways to be successful, please how??
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
What is the attitude of "i want to shake the hand of my local banker" like what? Are you like hanging out at your bank all the time?
If this guy only spent the same amount of time thinking about how to increase his income instead of how to squeeze out a little bit more out of a measly 1000 account, he would be much better off. IMO it’s pointless to worry about a few percent here and there until you’re over $50k in savings.
Hes doing good
It doesn’t matter for 1000
Most money market accounts have a minimum requirement
$500 debt free thats awesome
So power law says go all in XAI515K and hold for the 10 years. Okay let's do it! YOLO
$1000 no dif
Buy Bitcoin and use it as saving account for next 10 years ! Not a financial advice just my two cents!
Bitcoin. You will own nothing and be happy!
Wrong just put it in a brokerage account. Invest half and have the other half in cash
Can you withdraw the money at anytime with a brokerage account?
You definitely shouldn't put your emergency fund in stocks.
@BREEZYM6015 yes you sure can. I use Charles Schwab
Wrong. Cash looses 20% a year due to inflation. Better off to hold Gold as it will go up as the dollar goes down.
@BREEZYM6015 yes you sure can